City board set to de­cide sale price of his­toric post of­fice

Siloam Springs Herald Leader - - FRONT PAGE - By Hunter McFer­rin Staff Writer hm­c­fer­ ■

A de­ci­sion de­ter­min­ing the sale price of the down­town area’s his­toric post of­fice could be made dur­ing the city board’s first meet­ing of the month on Tues­day night.

The res­o­lu­tion, which is on Tues­day’s agenda, is a re­sult of the city’s de­ci­sion to en­ter into a lease agree­ment with Phat Tire Bike Shop to oc­cupy the prop­erty in July 2017, but did not ac­tu­ally move in un­til Oct. 2017 due to con­struc­tion de­lays; this ar­range­ment will ex­pire in Jan. 2020, ac­cord­ing to a city staff re­port. Af­ter this time, how­ever, the bike shop does have the op­tion to re­new the lease for a pe­riod of one year, or pur­chase the prop­erty out­right so long as they pro­vide an ad­vance no­tice of 90 days, which would mean a dead­line of Oct. 31, 2019.

More re­cently, the busi­ness ex­pressed in­ter­est in com­ing to an agree­ment on the sale price in the event that the shop did want to pur­chase the build­ing, say­ing that their busi­ness has been bet­ter than orig­i­nally ex­pected, ac­cord­ing to a city staff re­port. The prop­erty was ap­praised on Oct. 19 and the value of the ap­praisal was $260,000.

The city has a net in­vest­ment of $302,856.33 and Phat Tire Bike Shop has a net in­vest­ment of $25,271.70, amount­ing to a gross in­vest­ment of $328,128.03; this equates to the city’s in­vest­ment ac­count­ing for 92.3 per­cent and the bike shop’s ac­count­ing for 7.7 per­cent, ac­cord­ing to a city staff re­port. Con­sid­er­ing the ap­praisal is $260,000 and each party re­ceives an amount that is pro­por­tional to their net in­vest­ment, the city would re­ceive $239,980 from the sale of the prop­erty.

This leaves a deficit of $62,876.33, but the staff re­port im­plies that this is not to be a con­cern, as the lease pay­ments will amount to $22,500 in added

rev­enue by Oc­to­ber 2019 and that the city is re­ceiv­ing ad­di­tional sales tax rev­enue from the shop. It was also stated that by sell­ing the prop­erty, this in­creases the like­li­hood that the busi­ness will re­main in the down­town area for the fore­see­able fu­ture, con­tin­u­ing to gen­er­ate tax rev­enue in the process.

While it is likely to be a brief meet­ing, there are two ad­di­tional items on the board’s agenda for con­sid­er­a­tion:

• The third read­ing of an or­di­nance that would cre­ate a new chap­ter in the city code that would be re­ferred to as “land­scap­ing code,” as well as mak­ing some amend­ments to chap­ter 102 of the city’s mu­nic­i­pal code, a chap­ter that largely per­tains to zon­ing reg­u­la­tions, ac­cord­ing to a city staff re­port. Both of these ef­forts are in­tended to in­cen­tivize prop­erty de­vel­op­ers to pri­or­i­tize the preser­va­tion of and in­crease the amount of green space in the city. The or­di­nance also im­poses more strin­gent guide­lines for de­vel­op­ers as it per­tains to the min­i­mum amount of green space they’ll be re­quired to have on a given de­vel­op­ment.

• A res­o­lu­tion that would es­tab­lish a deed re­stric­tion on the 2.72 acres of land along Sager Creek lo­cated be­tween Coun­try Club Road and Lin­coln Street for a stream mit­i­ga­tion project cur­rently un­der­way that will help to al­le­vi­ate the po­ten­tial of flood­ing for a group of homes lo­cated fur­ther down­stream, be­tween West Jef­fer­son Street and West Twin Springs Street .

There will also be a bud­get work­shop at 5:30 p.m. prior to the board’s meet­ing at 6:30 p.m. Both the work­shop and board meet­ing take place at City Hall and are open to the pub­lic.

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